A parliamentary inquiry will be set up to investigate controversial planning decisions in Newcastle and the Hunter Valley.

"The inquiry comes in the wake of an Independent Commission Against Corruption investigation into allegations Liberal MPs in the Hunter received illegal political donations from developers.

Greens MLC David Shoebridge has introduced a motion to the Upper House for a select committee to probe transport and infrastructure developments in Newcastle and the Hunter region.

He has told parliament the inquiry is long awaited and will provide the answers the community has been looking for.

"People of Newcastle and the broader Hunter have been very keen for this," he said.

"I commend the motion to the house."

"There's enormous disquiet about these decisions which if they simply go through unchecked will fundamentally change the face of the region over the coming years and before we allow that to happen we owe to the community to look behind the closed doors and find out who exactly was making that happen."

Mr Shoebridge said the community deserves to know the truth.

"There are issues across the state where the corrupting influence of illegal developer donations are apparent but there's a real hot spot in the Hunter and we've seen Newcastle City Council which has also been led by a developer lord mayor who has since resigned," he said.

"When you pull it all together there's really a strong case to be made out to look at those array of decisions in the Hunter."

The inquiry will examine the decision to terminate the Newcastle rail line at Wickham and plans to build light rail.

It has received cross party support and will be chaired by the Christian Democrats MLC Fred Nile.

The full terms of reference for the inquiry:

1. That a select committee be established to inquire into and report on aspects of the planning process in Newcastle and the broader Hunter Region

2. The committee is to consider the role of the Department of Planning and Infrastructure, Newcastle City Council, UrbanGrowth NSW, Lake Macquarie Council and the Hunter Development Corporation in the consideration and assessment of:

e. the decision to terminate the Newcastle rail line at Wickham and any proposal to construct light rail including along Hunter and Scott Streets, and

f. any related matters.

3. That, notwithstanding anything to the contrary in the standing orders, the committee consist of six members comprising:

a. two Government members,

b. two Opposition members, and

c. Mr Shoebridge and the Revd. Mr Nile.

4. That Revd Mr Nile is to Chair the committee.

Community welcomes inquiry

The group Save Our Rail has applauded the announcement of an Upper House Inquiry into planning decisions in Newcastle and the Hunter.

Joan Dawson said she is pleased the rail decision will be a focus of the inquiry.

"And the expense of public money has to be done in a way that is much more correct than has been the case in this decision because this is a huge amount of public money being put to cutting off public transport instead of improving it," she said.

She said the planning inquiry is warranted.

"We'll we're hoping that that particular decision will be reversed because there's been minimal consultation with the community and certainly the decision to cut the rail line it is certainly a developers decision," she said.

"It has been made with pressure from the development lobby group."

Geoff Evans from the Newcastle Inner City Residents Alliance has also welcomed the inquiry and said the community deserves transparency when it comes to development decisions.

"We think there should be a reversal of all the decisions of major development decisions such as the cutting of the rail and the increase in the height levels in inner city Newcastle because the transparency would show that there's no justification of these decisions and this inquiry is an opportunity to demonstrate this to the public," he said.

You have no doubt been hearing a lot about the Paris Agreement and know that it pertains to climate change, but are too embarrassed at this stage to ask for an overall explanation of what it's all about.